Exchange rate volatility and its impact on the transaction costs of covered interest rate parity
β Scribed by Ramprasad Bhar; Suk-Joong Kim; Toan M. Pham
- Book ID
- 113681222
- Publisher
- Elsevier Science
- Year
- 2004
- Tongue
- English
- Weight
- 648 KB
- Volume
- 16
- Category
- Article
- ISSN
- 0922-1425
No coin nor oath required. For personal study only.
π SIMILAR VOLUMES
## Abstract We argue that a transaction tax is likely to amplify, not dampen, volatility in foreign exchange markets. Our argument stems from the decentralized trading practice and the presumable discrepancy between βinformedβ and βuninformedβ traders' valuations. Given that the informed valuations
Existing empirical evidence on the effect of exchange rate uncertainty on trade is generally conflicting and inconclusive+ While some studies found a positive relationship between exchange rate volatility and trade, others argue for the opposite+ Furthermore, the vast majority of past studies only f